2022 Supreme(Online)(Kar) 35832
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IN THE HIGH COURT OF KARNATAKA AT BENGALURU
DATED THIS THE 12TH DAY OF DECEMBER, 2022
BEFORE
THE HON'BLE MR. JUSTICE M. NAGAPRASANNA
WRIT PETITION No.23769 OF 2022 (GM - KIADB)
BETWEEN:
DHRUTHI INFRA PROJECTS LTD.,
NO. 120, 8B9 EPIP ZONE,
WHITEFIELD, BENGALURU 3 560 066,
(REPRESENTED BY ITS AUTHORISED
SIGNATORY/DIRECTOR)
MR. KARRU KOTESWARA RAO)
PUBLIC LIMITED COMPANY REGISTERED
UNDER COMPANIES ACT.
... PETITIONER
(BY SRI A.S.PONNANNA, SR.ADVOCATE A/W
SRI AJAY J.NANDALIKE, ADVOCATE)
AND:
1 .
STATE SINGLE WINDOW CLEARANCE
COMMITTEE REPRESENTED BY ITS
NODAL AGENCY KARNATAKA UDYOG MITRA
REPRESENTED BY IT9S PRINCIPAL SECRETARY
COMMERCE AND INDUSTRIES DEPARTMENT,
VIKASA SOUDHA,
BENGALURU.
2 .
KARNATAKA INDUSTRIAL AREA DEVELOPMENT BOARD
4TH AND 5TH EAST WING,
5TH FLOOR, KHANIJA BHAVAN,
RACE COURSE ROAD,
2
BENGALURU 3 560 001.
REPRESENTED BY IT9S CEO & EM
3 .
M/S. PRANITH HOLDINGS
NO. 7/30, 2ND MAIN ROAD,
DOMLUR LAYOUT,
BENGALURU 3 560 071.
REPRESENTED BY IT9S PARTNER
MRS.AKSHATHA RAJU.
... RESPONDENTS
(BY SRI N.KUMAR, AGA FOR R1;
SRI VIJAY KUMAR A.PATIL, ADVOCATE FOR R2)
THIS WRIT PETITION IS FILED UNDER ARTICLE 226 OF THE
CONSTITUTION
OF
INDIA
PRAYING
TO
DIRECT
THE
RESPONDENT-2, TO ISSUE A CONFIRMATION
LETTER AND
POSSESSION LETTER WITHOUT INSISTING FOR PAYMENT OF ANY
ADDITIONAL AMOUNT INCLUDING INTEREST IN TERMS OF
ORIGINAL ALLOTMENT LETTER IN ANNEXURE-D AND ETC.,
THIS WRIT PETITION HAVING BEEN HEARD AND RESERVED
FOR ORDERS ON 05.12.2022, COMING ON FOR PRONOUNCEMENT
THIS DAY, THE COURT MADE THE FOLLOWING:-
The petitioner is before this Court calling in question
termination of allotment dated 30-04-2022 issued by the 2nd
respondent - Karnataka Industrial Areas Development Board
(8Board9 for short) and seeking a consequential direction by
issuance of a writ in the nature of mandamus to issue confirmation
and possession letter without insisting upon any additional payment
or interest.
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2. Heard Sri A.S.Ponnanna, learned senior counsel appearing
for the petitioner, Sri N.Kumar, learned Additional Government
Advocate appearing for respondent No.1 and Sri Vijay Kumar
A.Patil, learned counsel appearing for respondent No.2.
3. Brief facts that lead the petitioner to this Court in the
subject writ petition, as borne out from the pleadings, are as
follows:-
The petitioner/Dhruthi Infra Projects Limited which later
became DIPL IT Hub Private Limited (8the Company9 for short) is a
Company represented by its Director. The Company generating
interest for developing certain business applies before the State
Level Single Window Clearance Committee (8the Committee9 for
short) for the purpose of allotment of a plot at the hands of the
Board. An application comes to be filed on 20-01-2017 in this
regard. It appears that the Committee gave its principle approval to
the investment project projected by the petitioner for establishment
of an industry - <Software Development Centre IT/ITES with
supporting infrastructure=. Pursuant to clearance of the project by
the Committee, an application comes to be filed before the Board
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seeking allotment in tune with what the Committee had approved.
The petitioner deposited a sum of Rs.6,00,50,000/- on 27-04-2017
and certain amounts subsequently on 25-05-2017 and 31-05-2017,
in toto the petitioner claims to have deposited Rs.7,50,50,000/-.
The total cost of the project qua allotment was Rs.25/- crores. The
petitioner was in due of Rs.17.5 crores as he had deposited Rs.7.5/-
crores. The Board issues an allotment letter on 06-06-2017 after
receipt of Rs.7.5 crores. The allotment letter had directed on
failure of the petitioner to take possession of the land within 30
days after making complete payment, the allotment would result in
cancellation and EMD being forfeited.
4.
The
petitioner
did
not
comply
with
the
conditions/directions. Several notices were issued to the petitioner
seeking payment to be made failing which, the condition that was in
the allotment letter would be exercised. The petitioner did not come
forward to make the payment. On 24-09-2021 the petitioner
communicates to the Minister for Large and Medium Scale
Industries to waive of interest amount, accept the balance amount
and hand over the plot. The communication also states that the
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Company is ready with demand drafts for the balance amount and
the photographs of the demand drafts were also enclosed but
payment was never made. Again on 14-11-2022 the same request
was placed before the Board after several notices being issued by
the Board.
5. On the petitioner not making payment for a long time,
close to 5 years after the allotment letter and as the petitioner was
still in due of Rs.17.5/- crores to the Board, the Board cancelled the
allotment in terms of its order dated 30-04-2022 on the ground
that the conditions stipulated in the letter of allotment had been
violated. After the cancellation of the allotment, since the plot
became open it was placed before the Committee and the
Committee approved the project of the 3rd respondent in terms of
its proceedings dated 26-07-2022 and allotment was made in
favour of the 3rd respondent. Pursuant to the allotment, possession
is also handed over to the 3rd respondent who, according to the
learned counsel appearing for the Board, has commenced
operations. After all these proceedings, the petitioner now prefers
the subject writ petition seeking quashment of termination letter
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dated 30-04-2022 and allotment made in favour of the 3rd
respondent and seeks consequential direction to allot the plot t